Ekitan & Co., Ltd. · TSE:3646
Ekitan & — FY2022 Earnings Presentation
39 slides from Ekitan &'s earnings presentation, May 12, 2022
Slide 1: FY03/2022 Briefing Session on the Financial Results
FY03/2022 (Full-term) Briefing Session on the Financial Results May 12, 2022 EKITAN Co., Ltd. TSE Growth: 3646 Copyright© 駅探. All Rights Reserved
Slide 2: Table of Contents
Table of Contents FY03/2022 Section 1 FY03/2022 Financial Results Overview P 3 Company-wide Section 2 FY03/2022 Financial Results Overview By P 8 segment Section 3 Efforts for the future P 18 Section 4 FY03/2023Performance forecasts P 35 2 Copyright© 駅探. All Rights Reserved
Slide 3: Section 1 Financial Results Overview (Company-wide)
Section 1 FY03/2022 Financial Results Overview (Company-wide) 3 Copyright© 駅探. All Rights Reserved
Slide 4: Highlights: Much higher revenues
Highlights FY03/2022 Much higher revenues Net sales EBITDA Operating profit ＋48.4% ＋28.0% -26.3% (+/- %) (mil. yen) 2,891 319 249 1,947 188 138 FY03 FY03 FY03 FY03 FY03 FY03 /2021 /2022 /2021 /2022 /2021 /2022 Copyright© 駅探. All Rights Reserved 4
Slide 5: Factors of Higher revenues / Lower earnings
Highlights FY03/2022 Factors of Higher revenues / Lower earnings Net sales 2,891mil.yen +/- % 0.484 +/- amount ＋943mil.yen Previous FY 1,947mil.yen EBITDA 319mil.yen +/- % 0.278 +/- amount ＋69mil.yen Previous FY 249mil.yen Operating profit 138mil.yen +/- % 0.263 +/- amount -49mil.yen Previous FY 188
Slide 6: Consolidated profit and loss statement
Consolidated profit and loss statement FY03/2022 Consolidated profit and loss statement (mil. yen) FY03/2021 Proportion FY03/2022 Proportion +/- % +/- amount Net sales 1,947 100.0% 2,891 100.0% 48.4% 943 Sales cost 820 42.1% 1,910 66.1% 132.8% 1,090 Gross profit 1,127 57.9% 980 33.9% -13.0% -146 SG&
Slide 7: Consolidated balance sheet
Balance sheet FY03/2022 Consolidated balance sheet (mil.yen) FY03 FY03 FY03 FY03/2021 +/- amount +/- amount /2022 /2021 /2022 Total current Total current 261 403 142 assets 2,864 2,422 -442 liabilities Total non-current liabilities 183 298 115 Property, plant and equipment 94 70 -23 Total liabilitie
Slide 8: Section 2 Financial Results Overview (By segment)
Section 2 FY03/2022 Financial Results Overview (By segment) 8 Copyright© 駅探. All Rights Reserved
Slide 9: Improvement in business portfolio
Proportion of net sales by segment FY03/2022 Improvement in business portfolio Net sales of Mobility Support Business consisting of existing businesses and that of Advertisement Platform Business which is a new business have become almost equivalent. The Company has gradually freed itself from a str
Slide 10: Mobility Support Business: Lower revenues / Lower earnings
Mobility Support Business FY03/2022 全社 Lower revenues / Lower earnings Net sales 1,635mil. yen +/- % 0.160 +/- amount -311 mil. yen Previous FY 1,947mil. yen EBITDA 622mil. yen +/- % 0.064 +/- amount -42 mil. yen Previous FY 664mil. yen Segment profit 554mil. yen +/- % 0.096 +/- amount -58 mil. yen
Slide 11: Mobility Support Business: PV transition
Mobility Support Business There were some influences of movement restrictions due to COVID-19, but PV (page view) of transfer information media has been constantly growing thanks to taking measures for website improvement. 100,000,000 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000
Slide 12: Advertisement Platform Business
Advertisement Platform Business FY03/2022 * As this segment has been newly added after acquiring the entire shares of Cirqua, Inc. which 全社 became a wholly owned subsidiary of the Company on April 1, 2021, no comparable figures are available for the previous consolidated fiscal year; and therefore f
Slide 13: Advertisement Platform Business recovery trend
Advertisement Platform Business Recovery trend of net sales of Advertisement Platform Business Recovery trend has been significant since December 2021 and is expected to continue in April 2022 and onward. 13 Copyright© 駅探. All Rights Reserved
Slide 14: Current progress in primary measures
Current progress in primary measures FY03/2022 Measures taken as bases for business development going forward ■ Improving transfer information media (UI/UX, measures for SEO) ■ Renewing transfer information apps Ø Response to external factors such as requests for voluntary refrain from unnecessary o
Slide 15: Overview of Station-by-station Ad
Overview of “Station-by-station Ad” Targeted ads can be displayed, based on the departing/arriving station and specific transport mode. PC smartphone 1 advertising 1 advertising 2 adver 1 advertising tising 2 2 advertising advertising Copyright© 駅探. All Rights Reserved 15
Slide 16: Efforts for MaaS: Demonstration experiment in Esashi Town
Efforts for MaaS Demonstration experiment in Esashi Town (Hokkaido Pref.) A demonstration experiment is planned for investigation and analysis of business feasibility of an earnings circularity which would contribute to implementation MaaS in Hokkaido Pref. * Actual scenes of the demonstration exper
Slide 17: Overview of vertical media deployment
Overview of vertical media deployment SEO Cirquaʼs Other adnets adnet ❶ Vertical media ❸D2C／EC (deployment) dehair real recruit gourmet estate ing ment ❶ Vertical deployment on various themes ❷ station H R ❷ Horizontal e o g municip deployment around ality r i each regional axis i o Horizontal MaaS
Slide 18: Section 3 Efforts for the future
Section 3 Efforts for the future 18 Copyright© 駅探. All Rights Reserved
Slide 19: Vision
Vision Vision To create novel services which have not ever existed, to contribute to the society 19 Copyright© 駅探. All Rights Reserved
Slide 20: Business concept: From the Stations
Business concept ~ From the Stations ~ By utilizing EKITANʼs business assets, and based on “stations” where many people gather, businesses (services) and users are connected ●past housing Monetization by “examining peopleʼs movement” meal gym flight ●From the Stations It is intended for creating new
Slide 21: Regional Marketing Platform Framework (essence)
Framework Framework Regional Marketing Platform Framework (essence) incorporate connect Information on users and business entities is incorporated, which is analyzed/organized around a “station” by utilizing EKITANʼs business assets, and then, business entities and users are connected. Users are pro
Slide 22: Regional Marketing Platform
Framework Regional Marketing Platform Information on users and business entities is “incorporated”, By utilizing transfer information engine and Cirquaʼs advertisement technologies, business entities and users are “connected”. transfer information engine incorporate connect DB algorithm user movemen
Slide 23: Promotion of the Regional Marketing Platform Framework
Promotion of the Regional Marketing Platform Framework with EKITANʼs business assets as its strength Technologies Media assets Customers' assets Group's assets / Data assets transfer information EKITAN.com & apps Cirquaʼs advertisement engine technologies 25 yearsʼ experience of data operation Trans
Slide 24: Strength
Strength Strength Technologies / Data assets １ Transfer information engine Media assets ２ EKITAN.com & apps Group's assets ３ Cirquaʼs advertisement technologies 24 Copyright© 駅探. All Rights Reserved
Slide 25: Strength: Transfer information engine
Strength 1 Technologies / Data assets: Transfer information engine Technologies / Data assets Strength 1 Transfer information engine １） 25 yearsʼ experience of data operation ２）Transfer: 50 mil./month ３） Train coverage: 100% more than 9,500 stations nationwide Transfer information ４） Data more than
Slide 26: Strength: EKITAN.com & apps
Strength 2 Media assets: EKITAN.com & apps Media assets Strength 2 EKITAN.com & apps Users per month Utilizing the domain PV: more than power which is effective in 80 mil. UU: 12 mil. ＆ searching with any station name as a keyword These assets will be good places to attract even more users and to co
Slide 27: Strength: Cirqua's advertisement technologies
Strength 3 Groupʼs assets: Cirquaʼs advertisement technologies Groupʼs assets Strength 3 Utilizing Cirquaʼs advertisement technologies Contents power with no.1 Transfer information share of producing domestic/overseas travel Expanded to and EKITAN.com guidebooks targeting ＋ advertisement around regi
Slide 28: Business strategies
Business strategies Framework Regional Marketing Platform Framework Strategy 1 Hybrid type vertical media deployment Strategy 2 Cirquaʼs adnet business deployment Strategy 3 MaaS business deployment Strategy 4 Regional targeting business deployment Strategy 5 M&A/alliance strategy 28 Copyright© 駅探.
Slide 29: Hybrid type vertical media deployment
Strategy 1 Hybrid type vertical media deployment Far more shop information is “incorporated”, and “organized/classified/displayed” using transfer information technologies, and rolled out to various pages. Improvement in attracting guests via media and better internal migration lead to profit growth.
Slide 30: Cirqua's adnet business deployment
Strategy 2 Cirquaʼs adnet business deployment By exploitation of media and new commercial materials, more users and commodities are “connected” to realize further growth. Building up bases for rolling out regional targeting advertisement Business model ●Centered on complex commercial materials, ads
Slide 31: MaaS business deployment
Strategy 3 MaaS business deployment Users and secondary transportation are “connected” to contribute to the SDGs, resulting in obtaining a unique position. Diagram of the reservation service of on-demand vehicle Current situation assignment by voice input provided in Esashi Town ● Project in Esashi
Slide 32: Regional targeting business deployment
Strategy 4 Regional targeting business deployment A system will be built up in which user information and spot information are “incorporated” and analyzed with transfer information engine, and then a user ID is assigned a behavior identifier to which some advertising (content) is delivered using Cir
Slide 33: Promoting M&A/alliance
Strategy 5 Promoting M&A/alliance In order to achieve mid-term management plan, M&A/alliance which satisfy the following three goals are promoted. To contribute to sales/profit for realizing the mid- Goal 1 term management plan Functional reinforcement necessary for realizing Goal 2 the “Regional Ma
Slide 34: Measures (FY03/2023 and onward)
Measures(FY03/2023 and onward) Framework Regional Marketing Platform Framework Specific measures during Strategies FY03/2023 Adding more service categories such as real 1) Hybrid type vertical media deployment estate, food service Expanding advertisement spaces by means of 2) Cirquaʼs adnet business
Slide 35: Section 4 FY03/2023 Performance forecasts
Section 5 FY03/2023 Performance forecasts 35 Copyright© 駅探. All Rights Reserved
Slide 36: Higher revenues & Higher earnings forecasted
Performance forecasts(FY03/2023) Higher revenues & Higher earnings forecasted Net sales EBITDA Operating profit ＋21.5% ＋21.2% +30.4% (+/- % YoY) (mil. yen) 3,511 386 2,891 319 180 138 FY03 FY03 FY03 FY03 FY03 FY03 /2022 /2023 /2022 /2023 /2022 /2023 36 Copyright© 駅探. All Rights Reserved
Slide 37: Appendix
Appendix 37 Copyright© 駅探. All Rights Reserved
Slide 38: Glossary
Glossary Term Description EBITDA Abbreviation of “Earnings Before Interest Taxes Depreciation and Amortization” which means profit calculated by adding depreciation and amortization of goodwill to operating profit station-by-station ad 地域マーケティングプラットフォーム構想 A service searching which enables sorting ad
Slide 39: Contact for IR
【Contact for IR】 EKITAN Co., Ltd. IR official These materials are intended only for providing information for reference concerning current business performance, and therefore investors are encouraged to make their final decisions on investment or any other matters based on their own judgements. Of c